The concept of "economic pessimism" stems from
A) the theory and empirical fact which states that developing nations face declining export prices relative to increasing import prices.
B) the fact that economic growth in an era of globalization is difficult to attain.
C) the fact that smaller countries would not enjoy comparative advantage unless they are allowed to subsidize some of their industries.
D) the fact that it is impossible to achieve desired economic development without adopting full democratic principles.
A
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What is the distinction between automatic and discretionary fiscal policy?
What will be an ideal response?
Critics of the government's fiscal policies argued that government deficits
A) prevented capital from flowing into the United States. B) were linked to the excess of imports over exports that occurred in the 1980s. C) caused the level of unemployment in the United States to increase during the 1980s. D) had directly contributed to a decline in the level of demand in the American economy.
Does economic growth have any negative side effects?
A) No. Every person in a nation experiencing economic growth will benefit. B) No, because where negative side effects do occur, a nation's government is required to neutralize them. C) Quite possibly. Some say economic growth puts people on a never-ending quest to satisfy newly created wants, so we always feel disappointed with our lives. D) yes, but only for the poorest segment of a nation's population
Table 19.2Quantity ConsumedTotal UtilityMarginal Utility115152 9330 4 3In Table 19.2, diminishing marginal utility occurs
A. With the first and third units only. B. With the second and fourth units only. C. With all units after the first. D. Only with the second unit.